I have a habit of confusing “overbought” with “oversold.” Some sort of financial dyslexia I guess. Anyway, I’m convinced the market is overbought. And yes, I have that right.
How do I know? I use the “giddy” factor. That is, whenever I get giddy about how damn smart I am at trading, it’s a sure sign to sell. And that nearly always means the market is extended. Or, overbought.
I’m now about 10% long, having sold nearly everything into this parabolic rally. I’ll start buying again on the next pullback. And there will be a “next pullback.”